{"id":32216,"date":"2017-12-22T13:01:31","date_gmt":"2017-12-22T18:01:31","guid":{"rendered":"http:\/\/www.rightwinggranny.com\/?p=32216"},"modified":"2017-12-22T13:01:31","modified_gmt":"2017-12-22T18:01:31","slug":"isnt-the-president-supposed-to-be-looking-out-for-the-interests-of-americans","status":"publish","type":"post","link":"https:\/\/www.rightwinggranny.com\/?p=32216","title":{"rendered":"Isn’t The President Supposed To Be Looking Out For The Interests Of Americans"},"content":{"rendered":"

Yesterday Breitbart<\/a> posted an article about one of the unexpected side effects of the Trump tax plan recently passed by Congress and signed by the President today.<\/p>\n

The article reports:<\/p>\n

German<\/a> economists are warning that the tax overhaul bill that now awaits the signature of President Donald Trump<\/a> will mean that \u201csignificant amounts of new investment and jobs will shift from Europe<\/a> to the United States<\/a>,\u201d according to the German business news publication Handelsblatt<\/a>.<\/strong><\/p>\n

The United States has had a much higher tax rate<\/a> for businesses than Germany<\/a> and most of Europe. Under the tax reform bill, the corporate rate in the U.S. will fall to 21 percent, lower than the estimated 28.2 percent effective rate in Germany and close to the European average of 20.9 percent.<\/strong><\/p>\n

The obvious question is, “Why wasn’t the corporate tax cut a long time ago?”<\/p>\n

The article further explains:<\/p>\n

Gavin Ekins, a research economist at the Tax Foundation<\/a> in Washington, argued that it is not only the tax rate that will make the US more attractive. He told Handelsblatt Global that in figuring out their \u201cservice cost,\u201d a metric that measures the cost of capital, companies also have to consider local labor costs, regulatory burdens, and things like energy prices and the cost of land.The US has the advantage in almost every category, he noted, but until now firms were deterred by the high corporate tax.<\/strong><\/p>\n

\u201cNow you get a windfall for having capital in the US, so that causes investors to invest,\u201d Mr. Ekins says. The change in the capital investment rules gives US firms \u201ca tremendous advantage,\u201d he said. \u201cIt\u2019s a pro-capital formation tax bill and this is why other countries are so wary about what the investment landscape will look like.\u201d<\/strong><\/p>\n

Using direct investment figures from the period 2008-2012, the German specialists calculated that the value of German foreign direct investment<\/a> in the US could rise by \u20ac39 billion with the tax reform. It said US direct investment in Germany would also rise, but by a much smaller amount: \u20ac6.3 billion.<\/strong><\/p>\n

The challenge to Congress will be to make sure that the extra money flowing into government coffers because of the changes in the tax law will be used to pay off the debt–not to increase spending.<\/p>\n","protected":false},"excerpt":{"rendered":"

Yesterday Breitbart posted an article about one of the unexpected side effects of the Trump tax plan recently passed by Congress and signed by the President today. The article reports: German economists are warning that the tax overhaul bill that … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3357,11304,1092,4490,3538,1947],"class_list":["post-32216","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-donald-trump","tag-foreign-direct-investment","tag-germany","tag-president-of-the-united-states","tag-tax-foundation","tag-tax-rate"],"_links":{"self":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/32216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32216"}],"version-history":[{"count":1,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/32216\/revisions"}],"predecessor-version":[{"id":32217,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/32216\/revisions\/32217"}],"wp:attachment":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}